A Massive Expiration | The OPEX Effect | January 2024

Video Description

In this episode, we take a deep dive into the January 2024 options expiration and its potential implications for the market. We discuss why this expiration could be a significant market event, what the behind-the-scenes details of the expiration look like and why the story is even more interesting in single stocks than it is for the S&P 500. We also get an update on the MAG 7 stocks, look at why volatility has been muted and discuss the implications of the rise of 0DTE options. #optionsinvesting #optionsflows 00:00 - Intro 01:10 - The options expiration cycle 02:40 - Options expirations as market turning points 07:46 - A look at the January OPEX 13:19 - The big January expiration in single stocks 17:09 - The return profile of LEAPS vs. stock ownership 20:57 - What's Moved: Looking back at the ideas from our last episode 23:09 - The importance of thinking in probabilities 26:01 - The December 2021 analogy 30:42 - Low realized volatility and its causes 34:07 - The short volatility trade 38:13 - Looking ahead at the February OPEX 41:21 - Fixed strike vol vs. the VIX 45:01 - Getting an update on the MAG 7 53:23 - An updated look at 0DTE options DOWNLOAD THE SLIDE DECK https://excessreturnspod.com/opexeffectjanuary2024.pdf MORE INFORMATION ABOUT SPOTGAMMA ⁠https://www.spotgamma.com⁠ ⁠⁠⁠⁠⁠FOLLOW BRENT ON TWITTER ⁠⁠⁠https://twitter.com/spotgamma⁠ ⁠⁠⁠⁠FOLLOW JACK ON TWITTER ⁠⁠https://twitter.com/practicalquant⁠